TLDR Founders · STRATEGIES & TACTICS
WHAT TO EXPECT WITH DILUTION
Summary from the TLDR Founders newsletter
This article discusses the dilution founders face when raising capital through various funding rounds, using data from over 43,000 US companies on the Carta platform. The standard advice of selling 20% in early-stage rounds remains. Founders have been selling less of their companies over the past four years. Challenges like bridge financings and investor-friendly deal terms can significantly increase dilution.